/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210702.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, July 2, 2021, Vol. 24, No. 126 Headlines A U S T R A L I A AVENIR PACIFIC: First Creditors' Meeting Set for July 8 CANAL ROAD: Second Creditors' Meeting Set for July 9 FOCUS FUNDING: Second Creditors' Meeting Set for July 8 MAINLY PAINT: Second Creditors' Meeting Set for July 9 MCLEAN STREET: Second Creditors' Meeting Set for July 9 PREMIER CIVIL: First Creditors' Meeting Set for July 13 RMD INNOVATIONS: First Creditors' Meeting Set for July 12 SPI ENERGY: Appoints Finance Veteran Janet Jie Chen as CFO C H I N A CHINA EVERGRANDE: Moody's Cuts CFR to B2, On Review for Downgrade YANZHOU COAL: Fitch Raises Foreign Currency IDR to 'BB+' YINCHENG INT'L: Moody's Affirms B2 CFR, Alters Outlook to Neg. ZHENENG JINJIANG: S&P Withdraws 'BB-' LT Issuer Credit Rating H O N G K O N G SEASPAN CORP: Fitch Publishes FirstTime 'BB' IDR, Outlook Stable I N D I A ADVANCED COMPUTER: CARE Lowers Rating on INR107cr LT Loan to D AGARWAL TOUGHENED: CARE Keeps B- Debt Rating in Not Cooperating ANAND IMPEX: CARE Keeps D Debt Rating in Not Cooperating AYUSH FOOD: CARE Lowers Rating on INR9.10cr LT Loan to B- BAREILLY HIGHWAYS: CARE Keeps D Debt Rating in Not Cooperating BHARTI PRINTS: CARE Lowers Rating on INR6cr LT Loan to B BRAND ALLOYS: CARE Lowers Rating on INR22cr LT Loan to D DULLAT RESORT: CARE Keeps D Debt Rating in Not Cooperating GAURISANKAR ELECTRO: CARE Keeps D Debt Rating in Not Cooperating GOKULESH RICE: CARE Keeps B- Debt Ratings in Not Cooperating HALDIA STEELS: CARE Lowers Rating on INR48.62cr LT Loan to D INDIANA INTERNATIONAL: CARE Keeps B- Rating in Not Cooperating K. D. SINGH: CARE Keeps B- Debt Rating in Not Cooperating KISAN MOULDINGS: CARE Keeps D Debt Ratings in Not Cooperating LALCHAND BUILDERS: CARE Lowers Rating on INR12.44cr LT Loan to B- MAA PEETAMBRA: CARE Keeps D Debt Rating in Not Cooperating MADHAV TEXTILES: CARE Keeps D Debt Rating in Not Cooperating MAHESHWAR HYDEL: CARE Keeps D Debt Rating in Not Cooperating MOMAI FOODS: CARE Keeps C Debt Rating in Not Cooperating NARAYAN FRUITS: CARE Keeps C Debt Ratings in Not Cooperating PRISM ENTERPRISE: CARE Keeps C Debt Rating in Not Cooperating RATNA COTTEX: CARE Keeps D Debt Rating in Not Cooperating SANGHAVI JEWEL: CARE Keeps D Debt Ratings in Not Cooperating SATHWIK EXPORTS: CARE Keeps C Debt Rating in Not Cooperating SIDDHI VINAYAK: CARE Keeps B- Debt Rating in Not Cooperating SIDHI VINAYAK RICE: CARE Keeps D Debt Ratings in Not Cooperating SKM BUILDCON: CARE Lowers Rating on INR5.75cr LT Loan to D SKS POWER: CARE Keeps D Debt Ratings in Not Cooperating Category SURYA COTTON: CARE Keeps D Debt Ratings in Not Cooperating SURYANSH AGRO: CARE Keeps B- Debt Rating in Not Cooperating TECHNO SATCOMM: CARE Keeps D Debt Rating in Not Cooperating USHA IMPEX: CARE Keeps D Debt Ratings in Not Cooperating I N D O N E S I A INDONESIA: Business Groups Warn Risks of Layoffs, Bankruptcies M A C A U WYNN RESORTS: Egan-Jones Keeps CCC+ Senior Unsecured Ratings N E W Z E A L A N D DONALD BUCKLEY: Goes Into Liquidation S I N G A P O R E JANUS CAPITAL: AAG Corporate Appointed as Liquidators SAS SUNRISE: Creditors' Proofs of Debt Due July 31 SOUTHERNPEC SINGAPORE: Court Enters Wind-Up Order TAYRONA CAPITAL: Court Enters Wind-Up Order S O U T H K O R E A E MART INC: Moody's Affirms Ba1 CFR After eBay Korea Acquisition - - - - - ================= A U S T R A L I A ================= AVENIR PACIFIC: First Creditors' Meeting Set for July 8 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Avenir Pacific Pty Ltd will be held on July 8, 2021, at 11:00 a.m. via teleconference facility. Brendan Nixon of SM Solvency Accountants was appointed as administrator of Avenir Pacific on June 29, 2021. CANAL ROAD: Second Creditors' Meeting Set for July 9 ---------------------------------------------------- A second meeting of creditors in the proceedings of Canal Road Film Centre Pty Ltd has been set for July 9, 2021, at 12:00 p.m. via video conference facilities. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 7, 2021, at 4:00 p.m. Peter Hillig of Smith Hancock was appointed as administrator of Canal Road on June 3, 2021. FOCUS FUNDING: Second Creditors' Meeting Set for July 8 ------------------------------------------------------- A second meeting of creditors in the proceedings of Focus Funding Pty Ltd has been set for July 8, 2021, at 10:30 a.m. via virtual meeting technology. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 7, 2021, at 4:00 p.m. Giovanni Maurizio Carrello of BRI Ferrier Western Australia was appointed as administrator of Focus Funding on June 2, 2021. MAINLY PAINT: Second Creditors' Meeting Set for July 9 ------------------------------------------------------ A second meeting of creditors in the proceedings of Mainly Paint Pty Ltd has been set for July 9, 2021, at 10:00 a.m. via virtual facilities only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 8, 2021, at 5:00 p.m. Graeme Robert Beattie of Worrells Solvency & Forensic Accountants was appointed as administrator of Mainly Paint on June 3, 2021. MCLEAN STREET: Second Creditors' Meeting Set for July 9 ------------------------------------------------------- A second meeting of creditors in the proceedings of McLean Street Pty Ltd has been set for July 9, 2021, at 10:00 a.m. via virtual meeting technology. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by July 8, 2021, at 4:00 p.m. Ross John McDermott of Ross McDermott Chartered Accountant was appointed as administrator of McLean Street on June 3, 2021. PREMIER CIVIL: First Creditors' Meeting Set for July 13 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Premier Civil Structures Pty Ltd will be held on July 13, 2021, at 11:00 a.m. via virtual meeting technology. Stephen Dixon and Leigh Dudman of Hamilton Murphy Advisory were appointed as administrators of Premier Civil on July 1, 2021. RMD INNOVATIONS: First Creditors' Meeting Set for July 12 --------------------------------------------------------- A first meeting of the creditors in the proceedings of RMD Innovations Pty Ltd will be held on July 12, 2021, at 10:30 a.m. via teleconference facilities. Gideon Isaac Rathner and Matthew Brian Sweeny of Lowe Lippmann were appointed as administrators of RMD Innovations on July 1, 2021. SPI ENERGY: Appoints Finance Veteran Janet Jie Chen as CFO ---------------------------------------------------------- SPI Energy Co., Ltd. has appointed Janet Jie Chen as its new chief financial officer. Ms. Chen will oversee the company's worldwide finance and accounting organization and will report directly to Xiaofeng Peng, chairman and chief executive officer of SPI Energy. "I am pleased to welcome Janet to our executive management team at this pivotal point in our growth trajectory," said Mr. Xiaofeng Peng. "Her experience and expertise are precisely what we need as we move into the next phase of our growth. With Janet's appointment, we have a strong management team in place to continue the execution of our strategy to drive revenue growth and continued margin expansion." Ms. Chen has over two decades' experience in auditing, accounting, business reorganization, merger and acquisitions, IPOs, and SEC reporting, including 7 years at a big international audit firm. She has rich experience and expertise in providing US GAAP related financial and internal control advisory services. She is a member of CICPA and FCCA. "Joining SPI Energy provides me with an exciting opportunity to work with a highly committed and professional executive team to deliver on an ambitious global growth strategy," said Ms. Chen. Concurrently with Ms. Chen's appointment, Chris Wang, previously SVP of Finance of SPI, has been appointed as CFO of the Company's wholly owned Phoenix Motorcars subsidiary to support and lead its planned spinoff and IPO. "Successfully spinning off Phoenix Motorcars will enable us to unlock significant value for our shareholders and provide the necessary resources to fully capitalize on the opportunities ahead," continued Mr. Xiaofeng Peng. "I am confident the addition of Chris to Phoenix's world-class management team will help move us forward toward our goal of making Phoenix the leader in sustainable transportation." About SPI Energy Co., Ltd. SPI Energy Co., Ltd. (SPI) is a global renewable energy company and provider of solar storage and electric vehicle (EV) solutions for business, residential, government, logistics and utility customers and investors. The Company provides a full spectrum of EPC services to third-party project developers, as well as develops, owns and operates solar projects that sell electricity to the grid in multiple countries, including the U.S., the U.K., Greece, Japan and Italy. The Company has its US headquarters in Santa Clara, California and maintains global operations in Asia, Europe, North America and Australia. SPI is also targeting strategic investment opportunities in green industries such as battery storage and charging stations, leveraging the Company's expertise and growing base of cash flow from solar projects and funding development of projects in agriculture and other markets with significant growth potential. SPE Energy reported a net loss attributable shareholders of $6.51 million in 2020, a net loss attributable to shareholders of $15.26 million in 2019, and a net loss attributable to shareholders of $12.28 million in 2018. As of Dec. 31, 2020, the Company had $217.03 million in total assets, $168.65 million in total liabilities, and $48.38 million in total equity. ========= C H I N A ========= CHINA EVERGRANDE: Moody's Cuts CFR to B2, On Review for Downgrade ----------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family ratings of China Evergrande Group, Hengda Real Estate Group Company Limited, Tianji Holding Limited and the backed senior unsecured ratings of Scenery Journey Limited. The affected ratings are as follows: Evergrande's CFR has been downgraded to B2 from B1, and its senior unsecured ratings have been downgraded to B3 from B2; Hengda's CFR has been downgraded to B2 from B1; Tianji's CFR has been downgraded to B3 from B2; Scenery Journey's backed senior unsecured ratings have been downgraded to B3 from B2; The backed senior unsecured rating on the notes issued by Scenery Journey are guaranteed by Tianji. The notes are also supported by a keepwell deed and a deed of equity interest purchase undertaking between Hengda, Tianji, Scenery Journey and the bond trustee. At the same time, Moody's has placed the ratings under review for further downgrade. The previous ratings outlook was negative. Hengda is a 60%-owned onshore subsidiary of Evergrande. It also owns 100% of Tianji, which in turn owns 100% of Scenery Journey. "The downgrade reflects Evergrande's weakened funding access and reduced liquidity buffer given its large debt maturities in the coming 12-18 months amid the tight credit environment in China and volatility in the capital markets," says Cedric Lai, a Moody's Vice President and Senior Analyst. Although Evergrande has been reducing its debt to improve its financial stability, the company still faces sizeable maturing debt and puttable bonds over the next 12-18 months. In addition, its trade payables increased to RMB622 billion at the end of 2020 from RMB545 billion at the end of 2019, which funded part of the debt reduction. Moody's expects the company will continue to focus on generating internal cash to pay its maturing debts and fund its operations over the next 12-18 months. However, the review for downgrade reflects the uncertainty over the company's ability to materially reduce its debt and payables to more sustainable levels, given its heightened financial risk. RATINGS RATIONALE Evergrande's B2 CFR reflects the company's strong market position as one of the top three property developers in China (A1 stable) in terms of contracted sales and land bank size. The CFR also reflects the company's nationwide geographic coverage, strong sales execution and low-cost land bank. Nevertheless, the rating is constrained by Evergrande's sizable maturing debt over the next 12-18 months, high proportion of trust loans and moderate credit metrics. The company's significant investments in its non-property businesses also constrain its credit profile. Evergrande's cash on hand of RMB181 billion as of the end of 2020 was not sufficient to cover its short term debt of RMB335 billion as of the same date. However, Moody's expects the company to continue to generate operating cash flow in the next 12 months, backed by contracted sales growth and high cash collection rate, which will cover the shortfall, the company's dividends and committed land payments over the same period. Moody's expects the company's contracted sales will grow modestly to around RMB750 billion in 2021 and RMB760 billion in 2022, supported by its strong sales execution. The company's contracted sales grew 5% to RMB285.2 billion in the first five months of 2021 compared with a year ago, with company's estimated cash collection ratio of 88%. Moody's expects that Evergrande will reduce spending on land and control debt growth over the next 12-18 months, given its high debt leverage. Accordingly, Moody's expects that Evergrande's debt leverage — as measured by revenue/adjusted debt (excluding payables) — will improve to 75%-80% over the next 12-18 months from 68% in 2020. Similarly, Moody's expects Hengda's revenue/adjusted debt (excluding payables) will increase to 90%-95% over the next 12-18 months from 85% in 2020. Adjusted EBIT/interest for both Evergrande and Hengda will improve because of the leverage trend. Specifically, Moody's expects that Evergrande's EBIT/interest will improve to 1.5x-2.0x over the next 12-18 months from 1.4x in 2020, while Hengda's EBIT/interest will rise to 2.0x-2.5x from 1.7x over the same period. Hengda's B2 CFR reflects the company's strong market position as one of the top property developers in China in terms of contracted sales and the size of its land bank. The rating also reflects Hengda's nationwide geographic coverage, strong sales execution, low-cost land bank and focus on mass-market residential properties. However, the CFR is constrained by the company's moderate debt leverage, sizable maturing debt over the next 12-18 months and high proportion of trust loans. Evergrande's B3 senior unsecured rating is one notch below its CFR, reflecting structural subordination. This risk reflects the fact that most of the claims are at the operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower. Tianji's B3 CFR reflects the company's standalone credit profile and a one-notch rating uplift, based on Moody's expectation that Hengda will provide financial support to Tianji when needed. The one-notch uplift reflects (1) Hengda's full ownership of Tianji; (2) Tianji's status as the primary platform for Hengda to invest in offshore property projects and raise offshore funds; and (3) Hengda's track record of providing financial support to Tianji. Tianji's standalone credit profile factors in its moderately large scale, weak liquidity and weak credit metrics. The B3 senior unsecured rating on the notes guaranteed by Tianji considers Moody's expectation that support from Hengda mitigates the risk of structural subordination. In terms of environmental, social and governance (ESG) risks, Moody's has considered Evergrande's concentrated ownership by its key shareholders, Hui Ka Yan and his wife, who held a 77% stake in the company as of the end of 2020. Nevertheless, Evergrande's established internal governance structures and standards, as required under the Corporate Governance Code for companies listed on the Hong Kong Stock Exchange, mitigate this risk. Evergrande's board has a total of nine members, three of which are independent nonexecutive directors. The company is transparent in disclosing its business and financial activities. However, its financial policy favors the use of debt leverage that maximizes returns to shareholders. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's review will focus on (1) Evergrande's access to funding and its refinancing and its liquidity risks, specifically its ability to address its maturing debt (including puttable bonds) in a timely manner, (2) the company's ability to reduce its leverage and payables on a sustained basis, and (3) its ability to reduce its reliance on trust loans in its debt composition. Moody's could downgrade the rating if Evergrande fails to materially reduce its debt and payables to more sustainable levels or maintain its adequate liquidity. An upgrade of the ratings is unlikely given the review for downgrade. However, Moody's could return the rating outlook to stable if Evergrande improves its access to funding, and materially reduces its debt and payables and reliance on trust loans such that its capital structure becomes more sustainable in nature. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. China Evergrande Group (Evergrande) is one of the top three developers in China by sales volume, with a standardized operating model. The company, which was founded in 1996 in Guangzhou, has rapidly expanded its business across China over the past few years. As of December 2020, its land bank totaled 231 million square meters in gross floor area. Hengda Real Estate Group Company Limited (Hengda) is the property arm and flagship subsidiary of Evergrande. It is also one of the top three property developers in China by sales volume, with a standardized operating model. The company was also founded in 1996 in Guangzhou, and has rapidly expanded its business across the country over the past few years. Evergrande is Hengda's largest shareholder. As of December 2020, Evergrande owned 60% of Hengda's shares. Incorporated in Hong Kong in 2009, Tianji Holding Limited is an offshore holding company that houses some of Hengda's property projects in China and overseas, including Hengda's Hong Kong headquarters. YANZHOU COAL: Fitch Raises Foreign Currency IDR to 'BB+' -------------------------------------------------------- Fitch Ratings has upgraded Yanzhou Coal Mining Company Limited's Long-Term Foreign-Currency Issuer Default Rating and senior unsecured rating to 'BB+' from 'BB-'. The Outlook is Stable. Fitch has also upgraded the rating on the China-based company's USD550 million 5.73% senior unsecured notes to 'BB+' from 'BB-'. The notes were issued by Yancoal International Resources Development Co., Limited, a wholly owned subsidiary, and unconditionally and irrevocably guaranteed by Yanzhou Coal. All the ratings are off Rating Watch Positive. The upgrade is driven by an upward revision of Fitch's internal assessment of the credit profile of Yanzhou Coal's parent, Shandong Energy Group Co., Ltd, formerly known as Yankuang Group, following its merger with the previous Shandong Energy Group. The revision reflects Shandong Energy's enlarged operating scale, strengthened market position and modestly improved financial profile. Fitch assesses Shandong Energy's credit profile using a bottom-up approach with a multiple-notch uplift from the ultimate parent, Shandong State-owned Assets Supervision and Administration Commission (SASAC), reflecting a moderate likelihood of government support, according to Fitch's Government-Related Entities (GRE) Rating Criteria. Yanzhou Coal's ratings are closely aligned with its parent's due to Fitch's assessment of strong linkages as per Fitch's Parent and Subsidiary Linkage (PSL) Rating Criteria. KEY RATING DRIVERS Parent's Stronger Credit Profile: The merger made Shandong Energy China's third-largest coal mining company behind China Energy Investment Corporation and the newly formed Jinneng Holding Group. Fitch believes its credit profile is higher than that of the pre-merger Yankuang Group on its larger operating scale, above-industry-average profitability and operating cash flow, and sound financial flexibility. Its operating cash flow per unit is stronger than that of most Chinese provincial coal state-owned enterprises (SOE). Parent's Linkage with State: Shandong Energy's status, ownership and control is assessed as 'Strong' due to its full provincial government ownership - 70% by the Shandong SASAC, 10% by the Shandong Provincial Council for Social Security Fund and 20% by Shandong Guohui Investment Co., Ltd. (BBB+/Stable). Its recent merger was state-initiated and Shandong SASAC directly appoints the company's board of directors and management, and supervises its strategy and operations. Fitch assesses Shandong Energy's support track record as 'Moderate' as the Shandong provincial government has provided tangible support to both Yankuang Group and the old Shandong Energy, including asset and land injections as well as subsidies. However, support has not been sufficient to boost the combined entity's standalone financial position to a strong level. Strong Financial Impact of Default: Fitch assesses the financial implications of a default as 'Strong' due to Shandong Energy's status as the largest provincial SOE in Shandong in terms of revenue and the second- largest by assets. It is also the largest bond issuer among Shandong's provincial GREs. Weak Socio-Political Impact of Default: Fitch assesses the socio-political implications of a default as 'Weak' because most of Shandong's coal demand is met by supply from other provinces. In addition, more than half of Shandong Energy's coal production is outside the province. Fitch expects Shandong Energy to assume the responsibility of optimising the province's energy mix by investing in renewable power, but Fitch has not factored this into the GRE assessment due to the lack of a detailed investment plan. Strong Linkage with Parent: Fitch assesses their legal and operational ties as moderate and strategic ties as strong. Yanzhou Coal, 56.0%-owned by Shandong Energy, is the group's major listed platform. The parent guaranteed about CNY10.9 billion, or 11%, of Yanzhou Coal's debt, by end-2020. There are large overlaps in their key board members and management. Yanzhou Coal accounted for about half of the group's coal production on a pro forma basis in 2019 and 2020. The parent injected seven subsidiaries into Yanzhou Coal in 2020. Elevated Commodity Prices: Coal prices in China have stayed exceptionally high year to date, supported by both strong demand and subdued supply due to limited new capacity and safety and environmental queries from local governments. Chemical product prices have also surged. Fitch expects prices to decline and normalise towards the historical average after 2021, but Yanzhou Coal's profit and operating cash flows will likely be materially strengthened in 2021. Positive FCF Despite Higher Capex: Fitch expects Yanzhou Coal to generate steady free cash flow (FCF) over the rating horizon to 2024, barring sizeable acquisitions, which will be treated as event risks, despite elevated capex. Yanzhou Coal's capex declined to CNY6.4 billion in 2020 from CNY10.6 billion in 2019 due to lower investment in chemical projects in Ordos and Yulin and delayed payments to contractors and suppliers. However, management has provided guidance of CNY13.8 billion in capex in 2021, including CNY3.5 billion for two newly injected subsidiaries, Future Energy and Lunan Chemicals. The company has also planned CNY2.0 billion in additional maintenance capex, which Fitch expects to be mainly spent on mining automation, safety measures as well as technological upgrades. SCP Remains at 'bb': Yanzhou Coal's Standalone Credit Profile (SCP) is supported by its large and diversified production base, and competitive costs and per unit operating cash flow. EBITDA was around USD30 per tonne of coal in 2019-2020, the highest among Fitch-rated Asian coal miners. FFO net leverage surged temporarily to 5.8x in 2020 due to major asset injections. Fitch expects net leverage to fall back to 3.4x in 2021 on strong commodity prices before normalising at 4.0x-4.2x in 2022-2024, in line with its 'bb' SCP. DERIVATION SUMMARY Shandong Energy's SCP is comparable with that of Zhaojin Mining Industry Company Limited (BB+/Stable, SCP: b+), as Shandong Energy's higher Fitch-forecast FFO net leverage of 6.1x-7.2x in 2021-2023 compared with Zhaojin Mining's 5.5x-6.4x is offset by its much larger scale and more geographically diversified operations. Shandong Energy benefits from higher unit profitability as well as a much larger scale compared with Indonesian companies such as PT ABM Investama Tbk (B+/Stable) and PT Indika Energy Tbk (BB-/Negative), but its SCP is constrained by higher leverage. Shandong Energy's assessment of 'Strong' under the status, ownership and control factor can be compared with the assessment of 'Very Strong' for Shandong High-Speed Group Co., Ltd. (SHS, A/Stable), as the government has an exceptionally high degree of control over SHS's strategic and investment decisions as it is a key provincial infrastructure investment platform, while Shandong Energy's business is more commercially oriented. Shandong Energy's 'Moderate' support record is comparable with the assessment for Gansu Province Electric Power Investment Group Co., Ltd. (BBB-/Stable), reflecting a record of support that has not been sufficient to keep their financial positions at a strong level. Shandong Energy's 'Strong' financial implications of a default assessment is comparable with that for Jiuquan Iron and Steel (Group) Co., Ltd. (BBB-/Stable), reflecting its status as one of the largest provincial GREs by assets and debt. The 'Weak' assessment of the socio-political impact of a default takes into consideration Shandong Energy's large asset exposure outside Shandong as well as the province's heavy reliance on coal supply from other provinces, making the local socio-political impact more controllable. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Average selling price of self-produced coal at CNY502/tonne in 2021, CNY449/tonne in 2022, CNY430/tonne in 2023 and thereafter; -- Unit coal production cost to remain largely flat in the coming years; -- Sales volume of self-produced coal to rise at 2.8% CAGR in the next four years from the pro forma 115.7 million tonnes in 2020; -- Annual capex of CNY11.6 billion-13.8 billion in 2021-2024 on a downward trend. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Shandong Energy's consolidated FFO net leverage below 5.5x on a sustained basis; -- Shandong Energy's FCF stays neutral to slightly negative on a sustained basis; -- Stronger likelihood of support from the Shandong government to Shandong Energy. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Shandong Energy's consolidated FFO net leverage above 7.5x on a sustained basis; -- Shandong Energy's consolidated FFO interest coverage below 2.5x on a sustained basis; -- Cash flow from operations interest coverage of Shandong Energy, excluding Yanzhou Coal, lower than 1.2x on a sustained basis (cash flow from operations includes dividends from Yanzhou Coal); -- Weaker likelihood of support from the Shandong government to Shandong Energy; -- Weakening linkage between Shandong Energy and Yanzhou Coal. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: Yanzhou Coal had total cash of CNY22.2 billion at end-1Q21 (end-2020: CNY24.5 billion), less than its debt maturing within one year of CNY37.0 billion (end-2020: CNY31.4 billion). However, the company also had total undrawn bank credit facilities of CNY93.0 billion at end-2020 (end-2019: CNY66.3 billion), of which CNY76.4 billion was granted to the holding company. Fitch expects Yanzhou Coal to continue to benefit from strong access to domestic funding sources to refinance its maturing debt due to its large provincial SOE status. ISSUER PROFILE Yanzhou Coal is a major coal-mining company in China with coal production of 120 million tonnes in 2020 and other businesses such as coal chemical production, transportation and power generation. SUMMARY OF FINANCIAL ADJUSTMENTS Yankuang Finance Company is 95%-owned and consolidated under Yanzhou Coal. Shandong Energy and its subsidiaries other than Yanzhou Coal deposited CNY10.3 billion into the finance company as of end-2020 and borrowed CNY3.1 billion from the finance company. Fitch has deducted the balance of CNY7.2 billion from Yanzhou Coal's cash to derive the readily available cash balance at end-2020. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. YINCHENG INT'L: Moody's Affirms B2 CFR, Alters Outlook to Neg. -------------------------------------------------------------- Moody's Investors Service has changed the rating outlook on Yincheng International Holding Co., Ltd. to negative from stable. At the same time, Moody's has affirmed Yincheng's B2 corporate family rating. "The negative outlook reflects our expectation that Yincheng's key credit metrics will stay weak for its B2 CFR over the next 12-18 months. The company's weak financial position and narrow access to funding could limit its funding flexibility, weakening its liquidity over the same period," says Kelly Chen, a Moody's Assistant Vice President and Analyst. "At the same time, the rating affirmation reflects our expectation that Yincheng will maintain solid contracted sales growth and adequate liquidity over the next 12-18 months," adds Chen. RATINGS RATIONALE Yincheng's B2 CFR reflects the company's 1) long track record of developing properties in Nanjing, Jiangsu Province, and 2) quality land bank in Yangtze River Delta. However, the B2 CFR is constrained by Yincheng's modest operating scale, high geographic concentration, low profitability and weak credit metrics, as well as narrow funding access. Moody's expects Yincheng's EBIT interest coverage to stay weak at 1.4x-1.6x over the next 12-18 months, after dropping to 1.5x in 2020 from 2.3x in 2019, mainly due to weak profitability. Moody's expects its gross profit margin will stay low at 12%-14% over the next 12-18 months after plummeting to 11% in 2020 from 16% in 2019, due mainly to its high land costs. The company's gross margin is also low compared with its single-B Chinese property peers. The company will have high refinancing needs over the next 12 months, as reflected by its high level of short-term debt and a weak cash to short-term debt ratio of 76% as of the end of 2020. Yincheng's narrow funding access and weak credit metrics raise uncertainties over its refinancing of maturing debt over the next 12 months, including two 364-day offshore bonds with a total outstanding amount of USD365 million, given the volatile offshore bond markets. However, these concerns can be partially mitigated given Yincheng's cash on hand and expectations of solid contracted sales growth and good cash collection ratio over the next 12-18 months. The company's contracted sales grew strongly at 305% to RMB12.7 billion over the first five months, partly due to the low base in the same period last year. Moody's expects the company's contracted sales to increase around 10% in 2021 and 2022 to RMB25 billion and RMB28 billion, respectively, supported by its sizable saleable resources in the affluent Yangtze River Delta region. This contracted sales performance will also support the company's revenue recognition and a stable leverage with its revenue/adjusted debt ratio at 65%-70% over the next 12-18 months. With regard to governance factors, Moody's has taken into account — in assessing Yincheng's CFR — the risk of its relatively concentrated ownership by Yincheng's key shareholder, Mr. Qingping Huang, the company's largest shareholder, who owned about 37.26% equity interest of the company as of December 31, 2020. Such a risk is partly tempered by the presence of three independent non-executive directors out of a total nine, with the audit and remuneration committees chaired by the independent non-executive directors. In addition, the presence of other internal governance structures and standards, as required under the Corporate Governance Code for companies listed on the Hong Kong Stock Exchange, also tempers the governance risk. In terms of dividend payments, Yincheng maintained a largely stable payout ratio at 20% of attributable net income in 2019-2020. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upgrade of the rating is unlikely in the near term, given the negative rating outlook. However, the rating outlook could return to stable if the company (1) can sustain sales growth while controlling its debt level, (2) increase its profit margin and EBIT interest coverage with the latter rising above 1.5x consistently, (3) as well as improve its liquidity position by refinancing maturing debt with long-term debt and strengthening the cash/short-term debt ratio above 1x on a sustainable basis. On the other hand, Moody's could downgrade the rating if (1) Yincheng's contracted sales weaken; or (2) the company accelerates land acquisitions beyond Moody's expectations, weakening its financial metrics and liquidity. Financial metrics indicative of a rating downgrade include: (1) EBIT/interest below 1.5x; or (2) revenue/adjusted debt below 50%-55%. Any signs of deterioration in liquidity or inability to refinance its maturing debt would also be negative to the company's rating. The principal methodology used in this rating was Homebuilding And Property Development Industry published in January 2018. Yincheng International Holding Co., Ltd. is a Nanjing-based residential property developer. At December 31, 2020, its land reserves totaled 6.0 million square meters in gross floor area. Its key operating cities include Nanjing, Wuxi, Hangzhou and Suzhou. At December 31, 2020, Yincheng was 37.26% owned by its chairman, Mr. Qingping Huang. ZHENENG JINJIANG: S&P Withdraws 'BB-' LT Issuer Credit Rating ------------------------------------------------------------- S&P Global Ratings had withdrawn its 'BB-' long-term issuer credit rating on Zheneng Jinjiang Environment Holding Co. Ltd. at the company's request. The outlook on the rating was stable at the time of withdrawal. ================= H O N G K O N G ================= SEASPAN CORP: Fitch Publishes FirstTime 'BB' IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has published a first-time Issuer Default Rating (IDR) of 'BB' to Seaspan Corporation (Seaspan). Fitch has also assigned a 'BB' rating to the company's senior unsecured notes. The Rating Outlook is Stable. KEY RATING DRIVERS Seaspan's ratings reflect its scale and franchise as a leading containership lessor, enhanced funding flexibility following recent unsecured debt issuances, which increased the level of unencumbered assets, low leverage and solid liquidity. Seaspan's ratings are also supported by a strong operating platform, which includes ownership of a young fleet on long-term charters, consistent operating cash flow generation, solid profitability, and an experienced leadership team. Seaspan's ratings are primarily constrained by the company's significant customer concentration, a high proportion of secured funding, high dividend payout ratio and the specialized nature and relative illiquidity of containerships when compared with other large equipment lessors. Rating constraints applicable to the containership leasing sector include risks associated with the cyclicality of the global shipping industry and the potential for undisciplined industry capacity build-up that may negatively impact the financial performance of freightliners, pressuring containership lease rates, and exposing Seaspan to potentially sizable impairment charges. Fitch's sensitivity analysis for Seaspan incorporated forecasted quantitative credit metrics for the company under the agency's stress case assumptions which included default of up to 15% of the company's revenues, a nine-month delay in placing displaced ships with another operator at a 50% discount, and recognition of up to 15% of impairment charges of the net book value of the equipment held for lease. Fitch believes Seaspan has sufficient liquidity withstand the stresses without breaching Fitch's liquidity coverage downgrade trigger of 1.0x, while maintaining leverage below 3.0x over the rating horizon. As of today, Seaspan is the largest containership lessor in the world with 130 ships accounting for 1.1 billion of Twenty-foot Equivalent Unit (TEU) capacity and has one of the largest order books in the industry consisting of 45 ships with 664 million TEU capacity, all of which already have contracted charter agreements. The company's fleet is the youngest among public peers with a weighted average fleet age of 5.0 years at May 31, 2021, pro forma for the order book and announced secondhand vessel acquisitions. Seaspan has meaningful customer concentration risk, as the top three customers comprised more than 70% of lease revenues, with the largest customer (Cosco Shipping), accounting for 32% of lease revenue at 1Q21. Fitch believes that the latter exposure is partially mitigated by the Chinese government's controlling interest in Cosco. Seaspan has not recognized impairments on its vessels since 2016 and Fitch expects impairment risk to remain low over the Outlook horizon. The company has reported average pre-tax returns on average assets (ROAA) of 4.3% over the past four years and the annualized ROAA was 5.2% in 1Q21. The average remaining pro forma charter period of 6.8 years on Seaspan's fleet provides good predictability to operating cash flows over the medium term. Seaspan's leverage is among the lowest compared to Fitch-rated equipment lessors, with a ratio of gross debt to tangible common equity of 1.6x as of March 31, 2021. Fitch expects leverage will remain at or below 2x over the rating horizon. Seaspan's mostly secured funding profile constrains the rating. At March 31, 2021, pro forma for $300 million of unsecured notes issued in April 2021, unsecured debt represented 17.6% of total debt; up from 6.5% yoy. Fitch would view an increase in unsecured funding favorably, as it would improve funding flexibility in times of stress. At March 31, 2021, Seaspan had $276 million of cash on hand and $450 million availability under its committed revolving credit facilities and Fitch expects Seaspan will generate above $600 million of operating cash in 2021. Seaspan's debt maturity profile is well laddered with less than $500 million of debt maturing within the next 12 months. In addition, Fitch anticipates the company's dividends will be managed in the range of 25% to 35% of operating cash flows. Fitch estimates the company's liquidity coverage ratio (defined as cash on hand, borrowing capacity on committed facilities, future capex related secured financing commitments and expected operating cash flows over the next 12 months to debt maturities, dividends and purchase commitments over the next 12 months) was above 2x at March 31, 2021, which is solid for the ratings. The Stable Rating Outlook reflects Fitch's expectation that Seaspan will continue to improve funding flexibility and increase its unencumbered assets through the issuance of unsecured debt, while generating consistent cash flows, maintaining sufficient liquidity, and managing leverage below 2.0x. The rating on Seaspan's unsecured notes is equalized with the company's Long-Term IDR, reflecting average recovery prospects in a stressed scenario based on the coverage from the pool of unencumbered vessels. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- An increase in unsecured debt approaching 35% of total debt, which would enhance the firm's funding flexibility; lack of sizable impairments; further diversification and improvement in the credit quality of the customer base; maintenance of manageable dividend payout ratio, leverage (adjusted debt to tangible equity) at or below 2x and liquidity coverage above 1x. In addition, Fitch would view more clearly articulated financial policies related to leverage and funding profile targets favorably. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- Material deterioration of the container shipping industry due to trade wars between large economies and/or exogenous shocks resulting in oversupply of containerships and sustained declines in lease rates and cash generation of re-chartered vessels; the default of one of the company's top lessees; elevated vessel impairments that erode Seaspan's equity base; debt funded capital distributions to the parent; a material and sustained increase in leverage from current levels; and/or the decline of liquidity coverage below 1x. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ========= I N D I A ========= ADVANCED COMPUTER: CARE Lowers Rating on INR107cr LT Loan to D -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Advanced Computer and Mobiles India Private Limited (ACMIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 107.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category and Revised from CARE B+; Stable Long Term/Short 57.00 CARE D; ISSUER NOT COOPERATING Term Bank Rating continues to remain Facilities under ISSUER NOT COOPERATING category and Revised from CARE B+; Stable/CARE A4 Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 6, 2019, placed the rating of ACMIPL under the 'issuer non-cooperating' category as ACMIPL had failed to provide information for monitoring of the rating. ACMIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated June 15,2021, June 8,2021, June 4,2021, June 2,2021, June 1,2021, May 19,2021, May 11,2021, May 8,2021, May 6,2021, May 1,2021, April 16,2021, April 9,2021, April 7,2021, April 2,2021, April 1,2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The ratings of Bank facilities have been revised on account of ongoing delays in debt servicing as per the publicly available information. Detailed description of the key rating drivers At the time of last rating on September 6, 2019 following were the key strengths and weaknesses: Key rating weakness * Ongoing delays/default in debt servicing: There have been continuing delays in servicing of debt obligations to the lenders as per publicly available information. ACMIPL is one of India's leading distribution house in the Telecom Industry. ACMIPL trades in mobile phones, accessories and data cards. ACMIPL has its distribution network spanning pan India with over 20 distribution centres and over 10,000 retail touch points. ACMIPL is licensed distributor for Lenovo/ Motorola, TCL Alcatel and their home grown brand Fox Mobiles. It is the exclusive distributor of Lenovo/Motorola Smartphones in Tamil Nadu. For the other brands sold by ACMIPL where it does not hold licensed distributorship of such brands, it only acts as an agent i.e. when a distributor approaches ACMIPL to provide mobiles of brands other than those for which it has distributorship license, ACMIPL buys from a licensed distributor of that other brand of smartphone and sells it to the distributor. In FY18, ACMIPL has also forayed into merchant trading of other electronic goods like LED Television sets etc. of Mitashi brand. AGARWAL TOUGHENED: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Agarwal Toughened Glass India Private Limited (ATGIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.55 CARE B-; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 4, 2020, placed the rating of ATGIPL under the 'issuer non-cooperating' category as ATGIPL had failed to provide information for monitoring of the rating for the rating exercise as agreed to in its Rating Agreement. ATGIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and emails dated March 30, 2021, April 4, 2021 and April 09, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The revision in the rating assigned to the bank facilities of ATGIPL is on account of non-availability of update on operational and financial performance of the company for 9MFY21. Jaipur-based (Rajasthan) Agarwal Toughened Glass India Private Limited (ATPL) was incorporated in October, 2009 by Mr. Uma Shankar Agarwal and Mr. Mahesh Kumar Agrawal with an objective to set up a greenfield project for manufacturing of toughened glass (single and double glazed) at Jaipur. The plant of the company has processing capacity of 5.90 (LSMPA) of toughened glass. Further, the promoters of ATPL have been engaged in the trading of glass since 1997 through its group concern, Agarwal Glass House (AGH). ATPL's products will be sold under the brand name of 'Agarwal Tough' mainly in North India viz. Uttar Pradesh, Delhi, Haryana, Punjab and Rajasthan. ANAND IMPEX: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Anand Impex (AI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 1.75 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 4.25 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 12, 2020, placed the rating(s) of AI under the 'issuer noncooperating' category as AI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. AI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 28, 2021, April 7, 2021, April 17, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Surat (Gujarat) based, Anand Impex was established as a partnership firm in the year 2006 by Mr. Dilip Kheni and Mr. Vinod Kheni along with Dilip Godhani. Anand Impex is engaged in the business of processing of rough diamonds into finished polished diamonds of various sizes, shapes, purity and colour. The firm has its sales office in Mumbai and its processing plant is located in Surat. The firm imports rough diamonds from Belgium and sells CPD largely in the domestic market. AYUSH FOOD: CARE Lowers Rating on INR9.10cr LT Loan to B- --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Ayush Food Product Private Limited (AFPPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.10 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Revised from CARE D; Stable outlook assigned Detailed Rationale and key rating drivers The revision in the ratings assigned to the bank facilities of AFPPL takes into account regularization of debt service obligations. The ratings further, continue to derive strength from experienced promoters and management. The above strengths are partially offset on account of small scale of operation, low profitability margins, leveraged capital structure and weak debt coverage indicators. The ratings are further constrained on account of Vulnerability to fluctuation in raw material prices and its presence in highly fragmented and highly regulated industry. Furthermore, the operations of the company falls under essential services and was not impacted due to lockdowns announced by Government of India to curtail the spread of the COVID-19. Key Rating Sensitivity Positive rating sensitivities - Factors that could lead to positive rating action/upgrade * Sustained improvement in scale of operations with Total Operating Income(TOI) over INR80 crore and profitability with PBILDT margin above 6%. * Sustained improvement in its cash accruals to service debt obligations. * Improvement in gearing levels to less than 3x on sustained levels Negative rating sensitivities - Factors that could lead to negative rating action/downgrade * Sustained weakening in revenue and profitability * Any un-envisaged incremental borrowings, deteriorating its overall gearing ratio over 5x on a sustained basis * Deterioration in liquidity profile with inventory pile-up and/or stretch in receivables Detailed description of the key rating drivers Key Rating Weaknesses * Small scale of operations: The total operating income of company increased on y-o-y by 20.22% to INR63.43 crore in FY21 (Provisional). The growth in scale is attributable to improvement in capacity utilization arising from stabilization of operations, and also supported by enhancement in its processing capacity during FY19. Further, the operations of the company falls under essential category and was not impacted due to lockdowns announced by the Government of India. Moreover, the company has generated TOI of INR12 crore for the months of April and May 2021. Despite improvement in scale of operations, the TOI of the company continues to remain small coupled with modest net-worth base of INR2.42 crore as on March 31, 2021(Provisional); which further limits the financial flexibility of the company during financial exigencies and industry downturn. * Low profitability margins: The profitability margins of the company is low on account of predominantly fragmented and highly competitive nature of business. The PBILDT margins of the company has remained in the range of 3.12% - 4.09% over the last three years ended FY21. Further, the PAT margin remained less than unity during the period under consideration. * Leveraged capital structure and weak debt coverage indicators: The capital structure of the company marked by overall gearing ratio moderated to 4.67x as on March 31, 2021 as against 4.49x as on March 31, 2020. The moderation in gearing levels is majorly due to Guaranteed emergency credit limit(GECL) loan of INR1.98 crore availed in July 2020 to support growing scale of operations. Moreover, with moderation in gearing levels, the debt service coverage indicators of the company also weakened marked by PBILDT interest coverage ratio and total debt to GCA stood at 2.15x and 10.97x respectively as at the end of FY21 (as against 2.03x and 10.53x as at the end of FY20). * Vulnerability to fluctuation in raw material prices: Agro-based industry is characterized by its seasonality, as it is dependent on the availability of raw materials, which further varies with different harvesting periods. Availability and prices of agro commodities are highly dependent on the climatic conditions. Adverse climatic conditions can affect their availability and lead to volatility in raw material prices. Further, the raw material (whole dal) prices are regulated by government to safeguard the interest of farmers, which in turn limits the bargaining power of the millers. The Government of India (GOI), every year decides a minimum support price (MSP) for pulses and dal. The sale of processed pulses in the open market is also regulated by the GOI through the levy of quota, depending on the target laid by the central government for the central pool. Given the market determined prices for finished product vis-à-vis fixed acquisition cost for raw material the profitability margins of pulses millers are highly vulnerable, especially during off season. * Presence in highly fragmented and highly regulated industry: The competitive nature of agro-product processing industry due to low entry barriers, high fragmentation and the presence of a large number of players in the organized and unorganized sector translate in inherent thin profitability margins. Further, there are multiple big brands with high marketing budgets in the Fast Moving Consumer Goods(FMCG) sector engaged in processing of grains to flour. AFPPL being a Small and Mid-size Enterprise(SME), with lower marketing budgets, the company mainly focusses on organic growth by regional sales. Key Rating Strengths * Regularization of debt servicing: The company had witnessed liquidity issues during Q4FY20(referring to a period from January 1, 2020 to March 31, 2020), which had subsequently resulted in delays in repayment of the term loan instalment. However, the term loan has been repaid in April 2020. Further, post April 2020 and completion of moratorium period(RBI Covid-19 regulatory scheme) in August 2020, the repayments are timely from September 2020 onwards. * Experienced promoters: The major operations of AFPPL is currently managed by Mr. Jitendra Goyal. The promoter is wellversed with the intricacies of the business on the back of an average experience of more than two decades in agro based industries related to repackaging and trading through the associate concerns (Ayush Enterprises). He looks after the overall function of the company and is ably supported by a team of qualified professionals. Further, the promoters are in the Agro industry business for the past two decades which has resulted in establishing good relationship with its customers and suppliers and is likely to support smooth operations of AFPPL. Liquidity analysis: Poor Liquidity position of the company is poor marked by lower cash accruals to repayment obligations for FY22. Further, the working capital limits are fully utilized during the last 12 months ended May 2021 leaving lower room available for growth. The working capital cycle of the company stood at 42 days as at the end of FY21 (Provisional) with major funds blocked with inventory. The company procures raw materials during April-May and October-November and maintains a inventory of around 90 days to support off seasonal use. Moreover, the company had availed moratorium for the period March 2020 to August 2020 for deferment of interest payments for the cash credit facility and deferment of monthly instalments and interest payments for the term loan facility. The Funded interest term loan(FITL) account has been paid during March 2021. Also, the company has availed GECL loan of INR1.98 crore to support the growing scale of operations. AFPPL was incorporated in 2013 and the commercial operations commenced in January 2017. The company is engaged in the business of processing(conversion to flour) of pulses and legumes (chana dal and tur dal) with its facility located at Pune, Maharashtra. The installed capacity of the plant is to process 100 metric ton of dal per day. The products are sold under their own brands Gold Star, Gold Coin, Viraat and Swabhiman. The average capacity utilization of the plant for FY21 is approximately 70%. BAREILLY HIGHWAYS: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Bareilly Highways Project Limited (BHPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 1,400 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 29, 2020, placed the rating(s) of BHPL under the 'issuer non-cooperating' category as BHPL had failed to provide information for monitoring of the rating. BHPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and emails dated April 14, 2021, April 24, 2021, April 28, 2021, April 29, 2021, May 4, 2021 and June 7, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers The rating assigned to the bank facilities of Bareilly Highways Project Limited (BHPL) continues to factor in delays in debt servicing by the company. At the time of last rating on May 29, 2020, the following were the rating weaknesses and strengths: Key Rating Weaknesses: * Delay in Debt servicing obligations: The liquidity position of the company continues to remain weak leading to delays in debt servicing. BHPL is a special purpose vehicle (SPV) promoted by Era Infra Engineering Ltd (EIEL) and OJSC- Sibmost (Sibmost) to undertake 4-laning of the existing 2-lane road from Km 262.0 to Km 413.2 (total project length of 156.57 km) on NH-24 from Bareilly to Sitapur in state of Uttar Pradesh under National Highways Development Programme (NHDP) Phase III of NHAI (rated 'CARE AAA') on Design, Build, Finance, Operate & Transfer (Toll) basis. As per the concession agreement (CA) signed between NHAI & BHPL in June 2010, the concession period is for 20 years (including a construction period of 2.5 years) from the Appointed Date (March 1, 2011). The original scheduled project completion date (SPCD) was August 28, 2013, which had been earlier revised to December 31, 2016, by NHAI (subject to certain conditions). The IE has further extended the SCOD till June 30, 2017. The total project cost was originally envisaged at INR1951 crore to be funded through promoter contribution of INR296 crore, grant of INR255 crore from NHAI, term loans of INR1,350 crore and subordinate debt (from banks) of INR50 crore. The project cost was revised to INR 2,601.89 crore, to be funded through promoter contribution of INR550.75 crore, grant of INR255 crore from NHAI, term loans of INR 1,746.14 crore and subordinate debt (from banks) of INR50 crore. BHARTI PRINTS: CARE Lowers Rating on INR6cr LT Loan to B -------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Bharti Prints (BP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE B; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B+ Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 5, 2020, placed the rating(s) of BP under the 'issuer noncooperating' category as BP had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. BP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 21, 2021, May 1, 2021, May 11, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating assigned to the bank facilities of BP have been revised on account of non-availability of requisite information. Surat-based (Gujarat), BP was established in 1985 as a proprietorship firm. It is promoted by Mr Ramesh Kumar Gupta. BPS is engaged in trading of fabrics and sarees. Furthermore, it also purchases fabrics and gets it process like printing, embroidery, cutting etc. on job work basis. During FY15, 60% of total revenue has come from manufacturing and remaining from trading. It purchases raw material i.e. fabrics mainly from the local market of Surat. Products are sold in Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh and Maharashtra. BRAND ALLOYS: CARE Lowers Rating on INR22cr LT Loan to D -------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Brand Alloys Private Limited (BAPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 22.00 CARE D Revised from CARE BB; Facilities Stable Short Term Bank Facilities 5.00 CARE D Revised from CARE A4 Detailed Rationale & Key Rating Drivers The revision in the rating assigned to the bank facilities of BAPL takes into account the delay in the servicing of the term loan for the month of May due to liquidity mismatch. Detailed description of the key rating drivers Key Rating Weaknesses * Delay in debt servicing: There has been delay in the servicing of term debt for the month of May'21 due to liquidity mismatch. The liquidity mismatch is primarily due to delay in collection from the debtors. Analytical approach: Combined For the purpose of arriving at the ratings, CARE has combined the business and financial risk profiles of Haldia Steels Private Limited (HSPL) and Brand Alloys Pvt Ltd (BAPL), as both the companies are into similar line of business with common management and exhibit cash flow fungibility. Furthermore, both HSPL & BAPL has given corporate guarantee to the respective bank facilities availed by each of them. Incorporated in 1994, BAPL, is a Kolkata based company having its manufacturing unit in Serampore, West Bengal. The company is engaged in manufacturing of TMT bars, railway components and bogies with the installed capacity of 60,000 MTPA for TMT bars and 10,000 MTPA for railways components. Further, BAPL is into an agreement with Tata Steels Limited for conversion of billets into TMT bar from last 11 years. HSPL, incorporated in 1996 is also a Kolkata based company having its manufacturing unit in Durgapur, West Bengal. The company is engaged in manufacturing of ferroalloys, sponge iron and billets with the installed capacity of 120,000 MTPA for Sponge Iron, 60,000 MTPA for Steel Billets and 12,000 MTPA for Ferro alloys. Further, the company has captive power plant with an installed capacity of 8MW. This apart, promoters' are engaged in the iron & steel products through other group entities, namely Ispat Damodar Private Limited, Brand Steel and Power Pvt. Ltd. & Sonic Thermal Private Limited as they are engaged in the same line of business. DULLAT RESORT: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Dullat Resort (DRT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 12, 2020, placed the rating(s) of DRT under the 'issuer noncooperating' category as DRT had failed to provide information for monitoring of the rating for the rating exercise as agreed to in its Rating Agreement. DRT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and emails dated April 27, 2021, April 7, 2021 and March 28, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating takes into account non-availability of information and no due diligence conducted due to non-cooperation by Dullat Resort with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Dullat Resort (DRT) was established as a partnership firm by Mr. Avtar Singh and Mr. Rupinder Singh in October 2015 sharing profit and losses equally. DRT is established with an aim to set up a resort by the name of "Dullat Resort" in 2 phases – Phase I and Phase II. Phase I consists of 8 rooms, 1 office room, 1 banquet hall, 1 conference room, and parking space for 400 cars at Mohali, Punjab. The average seating capacity of the banquet hall would be of 2000 people. Phase –II will consist of 16 rooms, 1 mini hall and a food court. Building plan approval for Phase II has also been taken. However, Phase II will be taken up in the later years. The firm's major income would include rentals from letting of banquet halls and rooms on rent for the purpose of weddings, parties, conferences and other social gatherings. The resort is located at 500 meters from Chandigarh airport. The project started in May 2017 and is expected to be completed by March 2018. GAURISANKAR ELECTRO: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Gaurisankar Electro Castings Private Limited (GECPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.26 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated April 17, 2020, placed the ratings of Gaurisankar Electro Castings Private Limited under the 'issuer non-cooperating' category as GECPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. Gaurisankar Electro Castings Private Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a email dated March 3, 2021, March 13, 2021 and March 23, 2021 among others. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. GECPL, incorporated in 2001 by Mr. Ramjeet Prasad and Mr. Sunil Kumar based out of Jharkhand with the objective of manufacturing of iron & steel products. Since inception, the company is engaged in manufacturing of mild steel (MS) bars and the facility of the company is located at Giridih, Jharkhand with an annual installed capacity of 17000 Metric Tons per annum for M.S. Bar, 24,000 Metric Tonnes per annum for M.S. Ingot and 2000 Metric Tons per annum for M.S. Scrap. GOKULESH RICE: CARE Keeps B- Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Shree Gokulesh Rice Mill (SGRM) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.56 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 18, 2020, placed the rating(s) of SGRM under the 'issuer non-cooperating' category as SGRM had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SGRM continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 4, 2021, May 14, 2021, and May 24, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Established in the year 2004, Ahmedabad-based Shree Gokulesh Rice Mill (SGRM) is a partnership firm engaged in the processing of non-basmati rice. Key partners include Mr.Minesh H. Patel, Mr.Raghav J. Patel, and Mr.Tejas K. Patel who manages the day-to-day operations. As on March 31 2016, it had a total installed capacity of 36,000 Metric Tonne per Annum (MTPA) for paddy processing and operates through its sole manufacturing facility at Jetalpur (Ahmedabad). SGRM procures paddy from local traders and supplies its products in pan India levels through brokers. SGRM has base of 150 brokers in pan India level. However, it supplies mainly to Gujarat, Maharashtra, Karnataka and Rajasthan. SGRM sells its products under three brands named 'Galaxy', 'Butterfly' and 'Gokulesh'. HALDIA STEELS: CARE Lowers Rating on INR48.62cr LT Loan to D ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Haldia Steels Private Limited (HSPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 48.62 CARE D Revised from CARE BB; Facilities Stable Short Term Bank Facilities 30.00 CARE D Revised from CARE A4 Detailed Rationale & Key Rating Drivers The revision in the rating assigned to the bank facilities of HSPL takes into account the delay in the servicing of the term loan for the month of May'21 due to liquidity mismatch. Detailed description of the key rating drivers Key Rating Weaknesses * Delay in debt servicing: There has been delay in the servicing of term debt for the month of May'21 due to liquidity mismatch. The liquidity mismatch is primarily due to delay in collection from the debtors. Analytical approach: Combined For the purpose of arriving at the ratings, CARE has combined the business and financial risk profiles of Haldia Steels Private Limited (HSPL) and Brand Alloys Pvt Ltd (BAPL), as both the companies are into similar line of business with common management and exhibit cash flow fungibility. Furthermore, both HSPL & BAPL has given corporate guarantee to the respective bank facilities availed by each of them. Incorporated in 1996, Haldia Steels Private Limited is a Kolkata-based company having its manufacturing unit in Durgapur, West Bengal. The company is engaged in manufacturing of ferroalloys, sponge iron and billets with the installed capacity of 120,000 MTPA for Sponge Iron, 60,000 MTPA for Steel Billets and 12,000 MTPA for Ferro alloys. Further, the company has captive power plant with an installed capacity of 8MW. Brand Alloys Private Limited (BAPL), incorporated in 1994, is also a Kolkata-based company having its manufacturing unit in Serampore, West Bengal. The company is engaged in manufacturing of TMT bars, railway components and bogies with the installed capacity of 60,000 MTPA for TMT bars and 10,000 MTPA for railways components. This apart, promoters' are engaged in the iron & steel products through other group entities, namely Ispat Damodar Private Limited, Brand Steel and Power Pvt. Ltd. & Sonic Thermal Private Limited as they are engaged in the same line of business. INDIANA INTERNATIONAL: CARE Keeps B- Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Indiana International Corporation Flooring Private Limited (IICFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.15 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 6, 2020, placed the rating(s) of IICFPL under the 'issuer not cooperating' category as IICFPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. IICFPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 22, 2021, April 1, 2021, and April 11, 2021 and numerous phone calls. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The ratings have been revised on account of non-availability of requisite information due to non-cooperation by Indiana International Corporation Flooring Private Limited with CARE's effort to undertake a review of the outstanding ratings as CARE views information availability risk as key factor in its assessment of credit risk profile. Indiana International Corporation Flooring Private Limited (IICF) was incorporated in June 2009 by Mr Syed Firdous Hussain and his wife Ms Gayatri Nikkam. The company is located in Bangalore, Karnataka. IICF deals in trading of wide range of floor products such as Antistatic Vinyl Flooring, Solid Wood, Self-Levelling Cement, Laminated Wooden Flooring, Luxury Vinyl Tiles, Sports Flooring and Conductive PVC Tiles etc. K. D. SINGH: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of K. D. Singh Poultries Private Limited (KPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated April 30, 2020, placed the rating of KPPL under the 'issuer non-cooperating' category as K. D. Singh Poultries Private Limited had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. K. D. Singh Poultries Private Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a email dated March 16, 2021, March 26, 2021 and April 05, 2021 among others. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Ranchi-based, K. D. Singh Poultries Private Limited (KPPL) incorporated in September 2007, was promoted by the Singh family of Ranchi, Jharkhand with Mr. Kapil Deo Singh being the main promoter. KPPL is engaged in trading of eggs. KISAN MOULDINGS: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Kisan Mouldings Limited (KML) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 208.75 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 91.25 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated April 2, 2020, placed the rating of KML under the 'Issuer Not Cooperating' category as the company failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The company continues to be non-cooperative despite repeated request for submission of information through emails dated February 16, 2021, February 26, 2021 and March 8, 2021; and numerous telephonic interactions. In line with the extant SEBI (Securities and Exchange Board of India) guidelines, CARE has reviewed the ratings on the basis of best available information. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Established in the year 1982, Kisan Mouldings Limited is primarily involved in the manufacturing of PolyVinyl Chloride (PVC) pipes and fittings. They also manufacture custom molded articles, molded furniture and water tanks. The company processes around 50,000 metric tonnes of polymer each year. The products are marketed under its own brand viz. KISAN & KML CLASSIC. It has manufacturing units located in Maharashtra, Karnataka, Madhya Pradesh and Union Territory of Dadra & Nagar Haveli. LALCHAND BUILDERS: CARE Lowers Rating on INR12.44cr LT Loan to B- ----------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Lalchand Builders Private Limited (LBPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.44 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated April 20, 2020, placed the rating of LBPL under the 'issuer non-cooperating' category as LBPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. LBPP continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and an email dated March 6, 2021, March 16, 2021, March 26, 2021 among others. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating has been revised on account of non-availability of the latest information from the public domain, uncertainty regarding the impact of COVID 19 pandemic on the operation of the company and non-cooperation from the client. Further, the banker and auditor could not be contacted due to non-cooperation from the client. LBPL incorporated in December 1996, was promoted by the Hans family of Bhubaneswar, Odisha for leasing out commercial space. The company, after remaining dormant till March 2013, started developing a mid-scale shopping mall at Vani Vihar, Bhubaneswar (Odisha). The company has developed the shopping mall at a total cost of INR24.12 crore, funded at debt equity of 1.64x and the mall became operation from March 2016. The shopping mall is spread over 0.5 acre of land and comprises of G+3 building. The total leasable area of the shopping mall is 45,900 square feet. The company has leased out its entire commercial space to the Future Lifestyle Fashion Limited (FLFL). The company had entered into lease out agreement with FLFL for a period of 9 years effective from the date of commencement of the shopping mall (i.e. March 2016). MAA PEETAMBRA: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Maa Peetambra Sugar and Power Limited (MPSPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.67 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 3, 2020, placed the rating(s) of MPSPL under the 'issuer non-cooperating' category as MPSPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. MPSPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 19, 2021, May 29, 2021, June 8, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Dabra (Madhya Pradesh) based Maa Peetambra Sugar and Power Limited was incorporated in 2013 by Mr. Rajendra Kandele is mainly engaged in the manufacturing of White Sugar. MADHAV TEXTILES: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Madhav Textiles (MT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/Short 7.00 CARE D; ISSUER NOT COOPERATING Term Bank Rating continues to remain Facilities Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 09, 2020, placed the rating(s) of MT under the 'issuer noncooperating' category as MT had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. MT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 25, 2021, May 5, 2021, May 15, 2021. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Surat (Gujarat) based MDT was established in 2010 as a proprietorship firm by Mr. Akhilesh Maheswari. MDT is into the business of trading of yarn (Viscose and Mono Filament) and finished fabrics. MDT is also doing job work of finished fabric however proportion of the same is very small. MDT imports its material i.e. viscose yarn and mono filament yarn from China and Korea and purchases finished fabric from the local market. These materials are then being supplied to local weavers (in case of yarn) and manufacturer of sarees and readymade garments (in case of finished fabric). MAHESHWAR HYDEL: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Shree Maheshwar Hydel Power Corporation Limited (SMHPCL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 451.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Non Convertible 99.20 CARE BB+ (CE)^; Stable; ISSUER Debentures NOT COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Backed by unconditional and irrevocable default payment guarantee from Power Finance Corporation (PFC, rated CARE AAA; Stable/CARE A1+). The guarantee operates through a trustee-administered structured payment mechanism for timely transfer of the required funds for repayment of principal and interest to debenture holders. Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated March 31, 2018, placed the rating of SMHPCL under the 'issuer non-cooperating' category as SMHPCL had failed to provide the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SMHPCL continues to be non-cooperative despite repeated requests for submission of information through email dated May 22, 2021; June 1, 2021 and June 11, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating of long-term bank facilities of SMHPCL continues to factor in the ongoing delays in servicing of debt obligations. The rating of NCDs is based on unconditional and irrevocable corporate guarantee provided by Power Corporation Limited (PFC). The guarantee operates through a trustee-administered structure payment mechanism to ensure the timely repayment of principal and interest obligations on the NCDs. The payment of interest and principal on the said NCDs has been timely as communicated by the debenture trustee periodically. SMHPCL is setting-up 400 MW (10x40MW) Maheshwar Hydro Power Project on the river Narmada at Maheshwar near Mandleshwar, Madhya Pradesh. The project was initially conceived for setting up by the Narmada Valley Development Authority (NVDA). Later, it was transferred to erstwhile Madhya Pradesh State Electricity Board (MPSEB) in 1980, before awarding it to S Kumars group (the group) as an Independent Power Project. The group created a Special Purpose Vehicle (SPV) in 1993 in the name of SMHPCL for execution of the project. The project entailed a total estimated cost of ~Rs. 3,939cr (originally INR 2,760 cr) to be funded in a debt to equity mix of 70:30. The long-term Power purchase agreement (PPA) for the project was signed in 1994 with erstwhile MPSEB (succeeded by M.P. Power Management Co Ltd as holding company for all discoms in M.P). The work on the project which started in the year 1998-99 was stalled in September 2001 due to withdrawal of certain lenders impacting the financing of the project. Consequently, SMHPCL approached Power Finance Corporation (PFC) for sanction of debt and the work on the project was started again in November 2005. MOMAI FOODS: CARE Keeps C Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Momai Foods Private Limited (MFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.64 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 28, 2020, placed the rating(s) of MFPL under the 'issuer non-cooperating' category as MFPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. MFPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 13, 2021, April 23, 2021, May 3, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Rajkot-based (Gujarat), Momai Foods Private Limited (MFPL) is a private limited company established in 2013 by Mr. Bhaveshbhai Khatra, Mr. Mehulbhai Khatra and Mr. Chandubhai Khatra. The company is engaged in business of manufacturing of ice cream. The company sells its products in state of Gujarat, Rajasthan and Madhya Pradesh. The company has installed capacity of 1.2 crore liters of ice cream per annum. The company sells its product under the brand name 'MOMAI'. The company sells its ice cream through its network of 40 distributors and 6 retail outlets. The company has ISO 22000:2005 certification for food safety management system. NARAYAN FRUITS: CARE Keeps C Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Narayan Fruits & Vegetables Cold Storage Private Limited continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.50 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 28, 2020, placed the rating(s) of Narayan Fruits & Vegetables Cold Storage Private Limited under the 'issuer non-cooperating' category as Narayan Fruits & Vegetables Cold Storage Private Limited had failed to provide information for monitoring of the rating. Narayan Fruits & Vegetables Cold Storage Private Limited continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 3, 2021, April 23, 2021, April 13, 2021, etc. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings continue to remain constrained owing to small scale of operations, weak financial risk profile and fragmented nature of the industry with high level of government regulation. The ratings, however, continue to take comfort from experienced promoter in managing business and positive outlook for Indian cold chain industry. Detailed description of the key rating drivers At the time of last rating on May 28, 2020, the following were the rating weaknesses and strengths. (Updated for the information available from Registrar of Companies). Key Rating Weaknesses * Small scale of operations: The scale of operations remained small as the company commenced its operations in February 2017 marked by a total operating income and gross cash accruals of INR 1.31crore and INR 0.30 crore respectively during FY20 (FY refers to the period April 01 to March 31). Further, the company's net worth base stood small at INR 0.40 crore as on March 31, 2020. The small scale limits the company's financial flexibility in times of stress and deprives it of scale benefits. * Weak financial risk profile: The company commenced its operations in February 2017. The PBILDT margin and PAT margin of the company stood at 42.03% and (7.18)% in FY20 owing to high interest cost against weak profitability. The capital structure of the company marked by overall gearing ratio stood weak at around 9.39x as on March 31, 2020, mainly on account of low net worth base. Further owing to weak profitability and gross cash accruals, the coverage indicators marked by interest coverage ratio and total debt to GCA stood weak at 2.11x and 12.81x respectively for FY20. * Fragmented nature of the industry with high level of government regulation: NFV business risk profile is constrained on account of exposed to competition from other regional players operating in warehousing industry. The firm is operating in such an industry which is fragmented in nature and has limited entry and exit barrier. This leads to limited bargaining power with customers and restrict to charge additional rent, which constraints its scale of operations. Key Rating Strengths * Experienced promoter in managing business: The company has been promoted by Mr. Nikhil Aggarwal and Mrs. Vani Aggarwal. Mr. Nikhil Aggarwal and Mrs. Vani Aggarwal have an experience of 2 decades in the trading and cold storage business respectively through various companies. The diverse experience of the directors allows the company to manage the business affairs efficiently. * Positive outlook for Indian cold chain industry: The warehousing and cold chain industry is emerging as a fast-growing business sector in India, with developments in the food processing sector, organized retail and government initiatives driving growth. Further with rapid growth of organized retail and manufacturing sector, the need for warehousing is increasing. The government is taking steps to set up cold chain infrastructure and has introduced schemes such as capital investment subsidy from the National Horticulture Board (NHB), the National Horticulture Mission (NHM) and the Ministry of Food Processing Industries (MoFPI). Apart from subsides, like credit-linked capital subsidy scheme for construction of cold storages and godowns, the government is also providing consultancy services to help connecting farmers to market & to avoid heavy losses & wastes of food products. Etawah, Uttar Pradesh-based Narayan Fruits & Vegetables Cold Storage Private Limited was incorporated in 2016 and commenced its operation in February 2017. The company is being managed by Mr. Nikhil Aggarwal. NFV is engaged in the business of renting of its cold storage facility for potatoes to the local farmers in Etawah from its cold storage unit with multi chambers having installed capacity to store 1,20,141 quintals for storage of potato as on March 31, 2017. PRISM ENTERPRISE: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Prism Enterprise (PE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/Short 7.00 CARE C; Stable/CARE A4; Term Bank ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 28, 2020, placed the rating(s) of PE under the 'issuer noncooperating' category as PE had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. PE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and emails dated April 13, 2021, April 23, 2021, May 03, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Rajkot-based (Gujarat), Prism Enterprise (PE) is a proprietorship firm established in 2016 by Ms. Kiran Ghanva with a main objective of sizing and warping of cotton yarn. Manufacturing plant is located at Rajkot with a proposed installed capacity of 2500000 kgs per annum of sized and warped yarn. The products manufactured by the entity will be used in textile industry. PRI was in the process of acquiring machineries worth INR8.40 crore which primarily included sizing and warping machine which was to be financed through proprietor's contribution of INR2.25 crore, term loan of INR6.00 crore and remaining INR0.15 crore by way of unsecured loan from friends and family. PRI was envisaging commencing of commercial production from May, 2017. RATNA COTTEX: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Ratna Cottex (RC) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.60 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 18, 2020, placed the rating(s) of RC under the 'issuer noncooperating' category as RC had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. RC continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 4, 2021, May 14, 2021, May 24, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Morbi-based Ratna Cottex (Ratna) was established in May 2015 as a partnership firm owned and managed by Mr. Harshad Jasmatbhai Ghodasara, Mr. Manojkumar Jasmatbhai Ghodasara and Mr. Jasmatbhai Valjibhai Ghodasara. The firm is currently engaged in cotton ginning and pressing for BT variety of cotton with short and medium staple fiber, having sole manufacturing facility located in Morbi, with an annual installed capacity of 5,488.56 Metric Tons of cotton bales and 10977.12 Metric Tons of cotton seeds as on March 31, 2017. Ratna commenced its operations from December 2015 with 24 ginning machines. SANGHAVI JEWEL: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Sanghavi Jewel Pvt Ltd. (SJPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 78.71 CARE D; ISSUER NOT COOPERATING Facilities– Rating continues to remain Fund Based under ISSUER NOT COOPERATING category Short term Bank 1.00 CARE D; ISSUER NOT COOPERATING Facilities– Rating continues to remain Non-Fund Based under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated April 1, 2020, placed the rating of SJPL under the 'issuer noncooperating' category as the company had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. The company continues to be non-cooperative despite repeated requests for submission of information through e-mails dated June 15, 2021, June 11, 2021, June 8, 2021 and phone calls. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Sanghavi Jewel Pvt Ltd. (SJPL) is a part of the Sanghavi Group, headed by Mr. Jayesh Sanghavi who is the Managing Director. Sanghavi Exports International Pvt Ltd (SEIPL) (rated CARE D; Non-co-operation), the flagship company of the group, holds 91.02% shares in SJPL. SEIPL is engaged in the processing of rough diamonds and export of cut and polished diamonds. SJPL is engaged in the manufacturing and export of studded gold, silver and platinum jewelry using polished diamonds, precious and other semi-precious stones. SATHWIK EXPORTS: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Sathwik Exports (SE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.50 CARE C; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 5, 2020, placed the rating(s) of SE under the 'issuer not cooperating' category as SE had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SE continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 21, 2021 March 31, 2021 April 10, 2021 and numerous phone calls. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The ratings have been revised on account of non-availability of requisite information due to non-cooperation by Sathwik Exports with CARE's effort to undertake a review of the outstanding ratings as CARE views information availability risk as key factor in its assessment of credit risk profile. Karnataka-based, Sathwik Exports (SE) was established in 2003 as a partnership firm by Mr. Janardhana Nayak and his family members. SE is engaged in the manufacturing of Desiccated Coconut Powder. The firm purchases Coconut from the farmers located in and around Karnataka. The firm sells its final products to the customers located in Madhya Pradesh, Uttar Pradesh, Delhi and Gujarat. The current installed capacity for the manufacturing of Desiccated Coconut Powder is 80,000 units per month. The firm generates 85 percent of the revenue by manufacturing and export of Desiccated Coconut Powder and the remaining 15 percent of the revenue by selling its by products such as Coconut Chips, Husks and Coconut Shells respectively. SIDDHI VINAYAK: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Shri Siddhi Vinayak Sarees (SSVS) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 14, 2020 placed the ratings of SSVS under the 'issuer non-cooperating' category as SSVS had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. SSVS continues to be non-cooperative despite repeated requests for submission of information through emails, phone calls and a letter/email dated March 30, 2021, and April 9, 2021, April 19, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, the banker could not be contacted. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The rating has been reaffirmed by taking into account non-availability of information and no due-diligence conducted due to non-cooperation by SSVS with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Uttar Pradesh-based, Shree Siddhi Vinayak Sarees (SSVS) was established on August 1, 2016 as proprietorship concern by Mrs. Komal Kapoor. The firm is engaged in wholesale trading of ladies' garment mainly Sarees.. The firm caters to the retail saree shops mainly in the regions of Uttrakhand, Uttranchal and Uttar Pradesh. The firm has two sister concerns namely Shri Siddhi Vinayak Creations Private Limited and Shri Siddhi Vinayak Trust. Shri Siddhi Vinayak Creations Private Limited is engaged in trading of sarees and suits in Bareilly (Uttar Pradesh) and is handled by husband; Mr.Anupam Kapoor and brother in law; Mr.Anubhav Kapoor of Mrs. Komal Kapoor. Mr.Anupam Kapoor is the trustee of Shri Siddhi Vinayak Trust, which generates its revenue from paramedical colleges, engineering colleges, management colleges and various degree offering courses. The firm has two associate concerns namely, Shri Siddhi Vinayak Creations Private Limited and Shri Siddhi Vinayak Trust. SIDHI VINAYAK RICE: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sidhi Vinayak Rice Mills (SVRM) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.14 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 18.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 14, 2020 placed the ratings of SVRM under the 'issuer non-cooperating' category as SVRM had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. SVRM continues to be non-cooperative despite repeated requests for submission of information through emails, phone calls and a letter/email dated March 30, 2021, April 9, 2021, April 19, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, the banker could not be contacted. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The rating takes into account non-availability of information and no due-diligence conducted due to non-cooperation by SVRM with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Karnal-based (Haryana) SVRM established in July 2008, as a partnership firm by Mr. Rameshwar Das, Mr. Ashok Kumar, Mr. Suresh Kumar and Mr. Amit Kumar sharing profit and losses equally. The firm started its commercial operations in February 2009. The firm is engaged in milling and processing and trading of basmati rice. The firm procures paddy from Haryana and Uttar Pradesh and sells domestically in states like Uttar Pradesh, Haryana and Delhi. It also exports its product to Saudi Arabia, Iran, Yemman. SKM BUILDCON: CARE Lowers Rating on INR5.75cr LT Loan to D ---------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of SKM Buildcon (SKM), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.75 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category and Revised from CARE C; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 17, 2021 placed the rating(s) of SKM Buildcon under the 'issuer noncooperating' category as SKM had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SKM Buildcon continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and letter/emails dated March 3, 2021, March 13, 2021, March 23, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating has been revised on account of ongoing delays in the account as per banker interaction. M/s SKM Buildcon (SKM) was established in 2008 as a partnership concern. M/s SKMB participates in the tender process of various public works department contracts, government contracts and related ancillary works. M/s SKMB has reputed client base primarily dealing with public works department, government departments and clients like Tarwani group and Fortune Recourse Private Limited (Swarnbhumi). The day-to-day affairs of the firm are looked after by Mr Suresh Kumar Mirghani with adequate support from the other partner and a team of experienced personnel. SKS POWER: CARE Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of SKS Power Generation (Chhattisgarh) Limited (SPGCL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Bank Facilities- 5,456.96 CARE D; ISSUER NOT COOPERATING Fund Based- Rating continues to remain LT-Term loan under ISSUER NOT COOPERATING category Bank Facilities– 504.00 CARE D; ISSUER NOT COOPERATING LT/ST Non-Fund Rating continues to remain Based (LC/BG) under ISSUER NOT COOPERATING category Non-Convertible 258.74 CARE D; ISSUER NOT COOPERATING Debenture issue Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated April 5, 2019, placed the rating(s) of SPGCL under the 'issuer non-cooperating' category as SPGCL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. Since then, SPGCL continues to be non-cooperative despite repeated requests for submission of information through phone calls and emails dated June 1, 2021 and June 7, 2021 and June 17, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, lenders could not be contacted due to absence of updated information. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of Key Rating Drivers At the time of the last rating on June 23, 2020, the following were the rating weaknesses: Key Rating Weaknesses * Delays in servicing of debt obligations: The company has delayed in servicing of debt obligation for the rated facilities. SPGCL promoted by the SKS group is a 51% subsidiary of SKS Ispat and Power Limited (SIPL). On November 12, 2018, Singapore-based Agritrade Resources has entered into definitive agreement with its lenders to acquire SKS Power Generation (Chattisgarh) in a one-time settlement of INR2170 crore and subsequently, post compliance of the condition precedents and on receipt on OTS amount transaction closed on 18th March 2019. Agritrade is a leading energy solutions provider headquartered in Singapore and listed in Hong Kong. The company is the first to introduce large scale, fully mechanized underground coal mining in Indonesia. SURYA COTTON: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Surya Cotton Industries (SCI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.83 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 9, 2020, placed the rating(s) of SCI under the 'issuer non-cooperating' category as SCI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SCI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 25, 2021, May 5, 2021, May 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Surya Cotton Industries (SCI) was established in October 2011 as a partnership concern by five partners. SCI is engaged in cotton ginning and pressing. SCI is into the business of manufacturing of cotton bales, cotton seed cake and cotton seed oil with installed capacity of 1,500 Metric Tonnes Per Annum (MTPA), 2,800 MTPA and 336 MTPA respectively. SURYANSH AGRO: CARE Keeps B- Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Suryansh Agro (SHA) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.33 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 14, 2020, placed the rating(s) of SHA under the 'issuer noncooperating' category as SHA had failed to provide information for monitoring of the rating for the rating exercise as agreed to in its Rating Agreement. SHA continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and emails dated April 19, 2021, April 9, 2021 and March 30, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating takes into account non-availability of information and no due diligence conducted due to non-cooperation by Suryansh Agro with CARE'S efforts to undertake a review of the rating outstanding. CARE views information availability risk as a key factor in its assessment of credit risk. Suryansh Agro (SHA) Allahabad (Uttar Pradesh) based firm was formed in February 2015 as a partnership concern by Mr. Sunil Kumar Kesarwani, Mr. Manish Kumar, Mr. Satish Kumar and Ms. Seema Kesarwani and shares profit and loss equally. The firm is engaged in the manufacturing of cattle feed through its raw material viz. paddy husk, rice bran, etc. The firm procures raw material from local rice mills and sell cattle feeds in Madhya Pradesh, Maharashtra, Bihar, etc. The promotes of the firm are also promoting other concern, SPRL foods Limited, which is engaged in the processing and selling of Basmati/non-Basmati rice, processing of wheat into various by products such as flour and semolina for different traders and millers in Andhra Pradesh, UP, Maharashtra, Delhi, MP and Telangana. TECHNO SATCOMM: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Techno Satcomm India Private Limited (TSCIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/Short 14.00 CARE D; ISSUER NOT COOPERATING Term Bank Rating continues to remain Facilities Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 22, 2020, placed the rating(s) of TSCIPL under the 'issuer non-cooperating' category as TSCIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. TSCIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 7, 2021, April 17, 2021, April 27, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Techno Satcomm (India) Private Limited (TSCIPL) was incorporated in year 2008 by Dave Family. The company was formerly known as Techno Com Inc started in August 2005 and later incorporated to Private Limited in January 2008. Currently, Mr. Jay Dave, Mr. Nirav Dave and Mr. Jagdip Rana are directors of the company. The company is engaged in providing services of RFID solutions, IP-based PA systems, WIFI solutions, CCTV Surveillance, Black Box in trains, Network Infrastructure, Captive portal and Biometric solutions. TSCIPL has a registered office in Mumbai and branches in Delhi and Kolkata. USHA IMPEX: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Usha Impex (UI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Short Term Bank 24.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain Under ISSUER NOT COOPERATING Category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated April 21, 2020, placed the rating of UI under the 'issuer non-cooperating' category as UI failed to provide information for monitoring of the rating. UI continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a mail/letter dated June 7, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of Usha Impex (UI) continue to be constrained by the ongoing delays in debt servicing, exposure to raw material price volatility and foreign currency fluctuation risk and highly fragmented and competitive nature of the industry. Detailed description of the key rating drivers At the time of the last rating on April 21, 2020, the following were the rating weaknesses: Key Rating Weaknesses * Ongoing delays in debt servicing: The firm's accounts have been classified as a Non-performing asset. * Exposure to raw material price volatility and foreign currency fluctuations risk: The prices of raw materials (traded products); non-ferrous metals like Zinc, Nickel, Tin, Copper, Lead are highly fluctuating in nature and move in tandem with global demand-supply factors. Furthermore, the firm procures its raw materials primarily via imports. The profitability margins, therefore, remain exposed to any adverse fluctuations in the prices of the raw material and foreign exchange. * Highly fragmented and competitive nature of the industry: The spectrum of the non-ferrous metal industry in which the firm operates is highly fragmented and competitive marked by the presence of numerous players in India. The trading of ferrous and non-ferrous raw materials industry is highly fragmented and competitive with the majority of the total number of players being unorganized. Hence the players in the industry do not have any pricing power and are exposed to competition-induced pressures on profitability. Incorporated in 1998, Usha Impex is engaged in the trading of non-ferrous metals from its main office in Ludhiana, Punjab. In addition, the firm has three warehouse-cum-sales offices, one each in Gurugram, Mumbai and Bangalore. The traded products include non-ferrous metals like Zinc, Nickel, Tin, Copper, Lead etc. in the form of wires, rods, bars, sheets, ingots, cathodes etc. The products find application in automobile, bicycle and electrical components with end-users located throughout India. ================= I N D O N E S I A ================= INDONESIA: Business Groups Warn Risks of Layoffs, Bankruptcies -------------------------------------------------------------- Reuters reports that Indonesian business groups on July 1 urged authorities to ensure there is enough financial support for companies, warning that otherwise new restrictions to tackle a surge in COVID-19 cases could result in layoffs and bankruptcies. Reuters relates that the "emergency" curbs, which come into effect between July 3 to 20, will shut shopping malls, force staff at non-essential businesses on the islands of Java and Bali to work from home and ban dining-in at restaurants. According to the report, the curbs come after Indonesia reported record daily numbers of coronavirus cases of more than 20,000, as the spread of the more contagious Delta variant accelerated infections and strained the country's healthcare sector. Business groups, such as the Indonesian chamber of commerce, Kadin, said while the curbs were needed they were being reintroduced just as an economic recovery was gaining traction. "The momentum was good. Every (economic indicator) had shown recovery," Kadin's deputy chairwoman Shinta Kamdani told Reuters. Reuters says the pandemic pushed Southeast Asia's biggest economy into its first recession in more than two decades last year, but the economy is expected to post its first annual expansion in the April to June period, with the government predicting 7 per cent growth. Kadin is forecasting 5 per cent second-quarter growth, but the third quarter outlook will depend on how effectively the curbs contain the virus, Kamdani said, Reuters relays. Up to now, President Joko Widodo had been reluctant to bring in measures that might hit the economy and news of the curbs wiped out most of the gains on Indonesia's stock index, while the rupiah hit its lowest since April, Reuters notes. Reuters says the Indonesian employers' association called on authorities to provide more fiscal support to help companies pay interest on bank loans and salaries, while revenues drop. "We hope there can be a solution so that companies aren't going to all collapse or be declared bankrupt," Reuters quotes chairman Hariyadi Sukamdani as saying. Alphonzus Widjaja, who chairs a malls' association, warned that layoffs were inevitable, even though he said few outbreaks were linked to shopping centres, Reuters relays. Hariyanto Wijaya, head of research at brokerage Mirae Asset Indonesia, said if the curbs worked the medium-term economic outlook should be positive. "I expect the emergency curbs will bring down daily COVID cases in Indonesia within two to three weeks, so the economy will grow better," he said, predicting a limited fall in the stock index during the period of tougher restrictions. ========= M A C A U ========= WYNN RESORTS: Egan-Jones Keeps CCC+ Senior Unsecured Ratings ------------------------------------------------------------ Egan-Jones Ratings Company, on June 11, 2021, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Wynn Resorts Limited. EJR also maintained its 'B' rating on commercial paper issued by the Company. Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited owns and operates luxury hotels and destination casino resorts in Las Vegas, Nevada, Macau, and China. ===================== N E W Z E A L A N D ===================== DONALD BUCKLEY: Goes Into Liquidation ------------------------------------- Stuff.co.nz reports that a well-known Southland photography business has gone into liquidation and its stores in Invercargill and Gore are closing down, largely because locals didn't support it, the owner said. Donald Buckley Photo & Frame director Nigel Cuckow has put his business into voluntary liquidation, Stuff relates. Mr. Cuckow, who has owned the business for nearly four years, said there were a number of reasons for the business failing. He was fighting illness, Covid-19 had seen a reduction in customers and a lot of people had gone the "cheap way" of getting their photos printed at big box retailers instead of using his company, according to the report. He acknowledged his loyal customers but indicated there weren't enough of them. "Us small businesses in town are struggling because people aren't supporting us as they should." People needed to understand the money they spent at big box retailers in Southland was often not staying local, it was ending up overseas, he said, Stuff relays. His Donald Buckley stores provided "top end" service and used "quality paper" to print photos on, but it was unable to compete on price with the big box retailers who bought printing paper in bulk, he said. "They [customers] probably think we are too dear but you are actually buying quality." The work at the Donald Buckley stores included photographic retail, restoration, framing and the printing of images from devices such as Iphones and Ipads, while it was understood to be one of the last outfits in the south still developing camera film, Stuff notes. ================= S I N G A P O R E ================= JANUS CAPITAL: AAG Corporate Appointed as Liquidators ----------------------------------------------------- Yessica Budiman and Abuthahir s/o Abdul Gafoor of AAG Corporate Advisory on June 25, 2021, were appointed as liquidators of Janus Capital Singapore Pte Ltd. The liquidators may be reached at: Yessica Budiman Abuthahir s/o Abdul Gafoor AAG Corporate Advisory Pte. Ltd. 144 Robinson Road #14-02 Robinson Square Singapore 068908 SAS SUNRISE: Creditors' Proofs of Debt Due July 31 -------------------------------------------------- Creditors of SAS Sunrise Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by July 31, 2021, to be included in the company's dividend distribution. The company's liquidators are: Lin Yueh Hung Oon Su Sun c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 SOUTHERNPEC SINGAPORE: Court Enters Wind-Up Order ------------------------------------------------- The High Court of Singapore entered an order on June 25, 2021, to wind up the operations of Southernpec (Singapore) Shipping Pte. Ltd and Southernpec (Singapore) Pte. Ltd. Goodwood Associates Pte Ltd filed the petition against the company. The company's liquidator is: Mr. Wong Joo Wan c/o Alternative Advisors Pte Ltd 1 Commonwealth Lane #06-21 One Commonwealth Singapore 149544 TAYRONA CAPITAL: Court Enters Wind-Up Order ------------------------------------------- The High Court of Singapore entered an order on June 18, 2021, to wind up the operations of Tayrona Capital Pte. Ltd. Lim Swee Lin filed the petition against the company. The company's liquidator is: Mr. Don Ho Mun-Tuke c/o DHA+ pac 63 Market Street, Bank of Singapore Centre #05-01A Singapore 048942 ===================== S O U T H K O R E A ===================== E MART INC: Moody's Affirms Ba1 CFR After eBay Korea Acquisition ---------------------------------------------------------------- Moody's Investors Service has affirmed E Mart Inc.'s Ba1 corporate family rating. The outlook remains negative. The affirmation follows E Mart's announcement that it has signed a securities purchase agreement for its acquisition of an 80.01% stake in eBay Korea LLC from EBAY KTA (UK) LTD. for a purchase price of KRW3.44 trillion. Moody's expects the transaction to close over the next 2-3 quarters, subject to regulatory approvals. "The affirmation reflects our view that, while the proposed acquisition of eBay Korea will increase E Mart's financial leverage, such risk can be absorbed by the company's improving performance and potential synergies from the acquisition," says Wan Hee Yoo, a Moody's Vice President and Senior Credit Officer. RATINGS RATIONALE Moody's expects E Mart's earnings to increase gradually over the next two years, supported by (1) improving same-store sales growth at its offline stores; (2) improvements at its food services, hotel and multi-shopping mall businesses, which were meaningfully hurt in 2020 due to the pandemic; and (3) incremental earnings from new investments. Consequently, Moody's expects E Mart's adjusted EBIT margin to increase to around 2.0%-2.2% over 2021-22 from 1.6% in 2020. Assuming that the acquisition is completed on January 1, 2022 with the majority of acquisition cost funded by debt, Moody's expects E Mart's adjusted debt/EBITDA to increase to 5.7x-6.2x in 2022-23 from 5.3x estimated for 2021, because its higher debt will likely more than offset an increase in earnings. This level of financial leverage is weak for the company's Ba1 rating category. That said, there is a likelihood that E Mart will execute additional deleveraging measures over the next 12-18 months. The company has a track record of executing sizable asset sales over the past 2-3 years. Moody's recognizes that the acquisition will significantly strengthen E Mart's e-commerce business through larger scale and stronger market position and bargaining power, particularly in the non-fresh food categories. Nevertheless, a degree of execution risk exists during the integration process. eBay Korea is one of Korea's leading e-commerce retailers, based on online transaction volume. E Mart's Ba1 CFR continues to reflect the company's leading position in Korea's hypermarket industry, as well as its holdings of sizable liquid equity investments. These strengths are counterbalanced by the company's moderate profitability and high financial leverage, caused by intense competition from the e-commerce industry, as well as its large-scale investments. E Mart's rating also considers the following environmental, social and governance (ESG) factors. The company is exposed to increasing social risks stemming from changing consumer preferences and spending patterns. Korea's retail sector is undergoing a shift toward e-commerce, particularly amid the pandemic, which has increased pressure on offline retailers. Although E Mart is investing in online platforms and restructuring certain offline stores, this structural shift could strain its financial profile, at least over the next 1-2 years. Moody's has also considered E Mart's aggressive investment appetite, although the company's track record of asset sales to contain debt increases and its manageable dividend payouts mitigate this risk. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The negative outlook reflects Moody's expectation that E Mart's financial leverage will remain weak over the next 1-2 years due to its large-scale investments. Moody's could return the outlook on E Mart to stable if the company improves its financial profile by enhancing its profitability or containing the growth in its adjusted debt through asset sales, such that its adjusted debt/EBITDA remains below 5.5x and its adjusted EBIT margin exceeds 2.0% on a sustained basis, while maintaining strong access to the debt markets. Moody's could downgrade the rating if E Mart's profitability remains weak or if it undertakes additional large-scale investments, such that its adjusted debt/EBITDA exceeds 5.5x-6.0x or its adjusted EBIT margin remains below 2.0% on a sustained basis. A significant weakening in E Mart's liquidity will also be negative for its rating. The principal methodology used in this rating was Retail Industry published in May 2018. E Mart Inc. is the largest hypermarket operator in Korea by revenue and number of stores. As of March 31, 2021, it operated 161 hypermarket stores in Korea, including 20 warehouse stores. The company is also engaged in other businesses, such as in the online shopping mall, supermarkets, convenience stores, hotels and food services. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***